Chinese companies are gearing up to redefine the future of transport, betting big on flying cars and robotaxis as competition in the world’s largest electric vehicle (EV) market intensifies.
Premium EV maker Xpeng will invest 3 billion yuan (US$413 million) in the electric vertical take-off and landing (eVTOL) aircraft business this year, as the company sees flying cars a bigger industry than EVs over the next two decades, CEO He Xiaopeng said at the China EV100 forum in Beijing on Saturday.
“Although low-altitude aircraft only account for 3 to 5 per cent of today’s automotive sales volume, they represent 20 per cent in terms of sales revenue,” said He, adding that he believes the global flying car market could reach US$2 trillion in the next two decades, double the size of land vehicles.
The company is building a factory in Guangzhou, the southern city where it is based, and plans to achieve an annual production capacity of 10,000 aircraft once the plant starts operations in 2026, said He.
The Xpeng CEO’s comments come as China’s car and tech companies are eyeing their next growth opportunity amid the crowded EV market, in which they have been successful in the electrification of transport.
